In international trade, customs declaration is a critical process that ensures the smooth import and export of goods. Properly navigating this process helps prevent delays, fines, or the seizure of shipments. This guide provides a comprehensive overview of the customs declaration procedure, essential documentation, and common challenges to help businesses avoid potential pitfalls.
1. What Is Customs Declaration?
Customs declaration involves the submission of detailed information about goods being imported or exported to the relevant customs authorities. This process verifies that the goods comply with all applicable laws and regulations, facilitating legal and efficient cross-border movement.
2. When to Initiate the Declaration Process
The timing for initiating customs declaration varies depending on the mode of transport:
- Sea Freight: Begin the declaration after the container has been delivered to the port terminal.
- Air Freight: Start once the cargo has been received at the airport warehouse.
- Special Cases: Some ports, like Shanghai’s Yangshan Port, may require pre-declaration before the goods arrive at the port.
It’s crucial to complete the declaration within the deadlines set by customs authorities to avoid penalties or delays.
3. Essential Documentation for Declaration
Accurate and complete documentation is vital for a successful customs declaration. Required documents typically include:
- Commercial Invoice: Details the transaction between the buyer and seller.
- Packing List: Specifies the contents, dimensions, and weight of each package.
- Sales Contract: Outlines the terms and conditions of the sale.
- Customs Declaration Form: Official form submitted to customs authorities.
- Power of Attorney: Authorizes a customs broker or agent to act on behalf of the exporter/importer.
Additional documents may be required for specific goods:
- Inspection Certificates: For products subject to quality or safety inspections.
- Fumigation Certificates: For wooden packaging materials.
- Brand Authorization Letters: For branded products to verify authenticity.
- VAT Invoices: May be necessary for high-value shipments, depending on the port’s requirements.
4. Methods of Declaration
Customs declarations can be submitted in two primary ways:
- Electronic Declaration: The preferred and more efficient method, allowing for faster processing.
- Paper-Based Declaration: Still accepted in some jurisdictions but generally slower.
If utilizing a freight forwarder or customs broker, an electronic power of attorney must be granted to authorize them to submit declarations on your behalf.
5. Step-by-Step Declaration Process
- Initiate Electronic Authorization: The exporter or their agent submits an electronic power of attorney to the customs broker.
- Data Entry: Detailed information about the goods, including product names, specifications, quantities, and values, is entered into the customs system.
- Draft Review: Carefully review the draft declaration to ensure all information is accurate and complete.
- Submission: For sea freight, ensure that the manifest data has been entered and is retrievable before submitting the declaration.
- Customs Review: Customs authorities will examine the submitted information and may request a physical inspection of the goods.
- Clearance: Once approved, customs will release the goods for export or import.
6. Common Questions and Issues
Q1: Are there fees associated with customs inspections?
A1: Generally, if no issues are found during the inspection, most ports do not charge inspection fees. However, some ports may impose a fee. Additionally, if an inspection causes a shipment to miss its scheduled departure, extra costs may be incurred. Customs brokers also charge service fees for their assistance.
Q2: Can a company without export rights still export goods?
A2: Yes, companies lacking export licenses can engage qualified freight forwarders or trading companies to handle the export process on their behalf.
Q3: Is it possible to amend a declaration after submission?
A3: Post-departure amendments are challenging, especially outside Guangdong Province, due to the need for consistency among the declaration, manifest, and bill of lading. In Guangdong, amendments may be possible with appropriate documentation.
Q4: What if goods were shipped without a declaration?
A4: If goods have been exported without a customs declaration, rectifying the situation is typically not feasible unless the goods are returned and properly declared.
Q5: What are the next steps after customs clearance?
A5: After clearance, the customs broker or freight forwarder will provide the exporter with essential documents, such as the declaration copy and release order, for record-keeping and further processing.
Q6: Do multiple declarations for a single container require multiple bills of lading?
A6: Not necessarily. A single container can have multiple declarations without needing separate bills of lading, unless specifically requested by the client.
Q7: How to handle declarations for multiple containers with different consignees?
A7: Each container should have declarations corresponding to its consignees. For example, a 40HQ container with consignees A, B, and C would have three separate declarations. A 20GP container with consignees A and B would have two declarations. Goods for a single consignee should not be split across multiple containers in declarations.
Q8: What if there’s insufficient time for customs clearance before shipment?
A8: If the vessel hasn’t departed, negotiate with the shipping company for a delayed release. If that’s not possible, consider alternative solutions like container monitoring, especially in regions like East or North China.
Q9: What’s the difference between direct declaration and transshipment?